Financial Results for the First Quarter of

Fiscal Year Ending March 31, 2024 (FY2023)

August 9, 2023

Naoki Muto

Chief Accounting and Financial Officer

Terumo Corporation

Hello. I am the CAFO, Muto. I will give an overview of our earnings results for the 1st quarter of the fiscal year ending March 31, 2024.

1

Forward-Looking Statements and Use of Document

Among the information that Terumo discloses, the forward-looking statements including financial projections are based upon our assumptions using information available to us at the time and are not intended to be guarantees of future events or performance. Accordingly, it should be noted that actual results may differ from those forecasts or projections due to various factors. Factors affecting to actual results include, but are not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition. Information about products (including products currently in development) which is included in this material is not intended to constitute an advertisement or medical advice.

©TERUMO CORPORATION

2 / 13

2

Highlights

Revenue

Strong global demand continued for highest-ever quarter

C&V and TBCT grew in double digits to drive the Group overall

Operating profit

-1% YoY growth excluding FX. Steady progress toward annual guidance Effects of profitability improvement accrued (price policy and cost reduction)

Shareholder return

Will execute 20B JPY share repurchase this fiscal year

©TERUMO CORPORATION

3 / 13

Here are the highlights of this earnings report.

Q1 sales revenue was our highest-ever for a quarter. Strong global demand continued as sales grew 5% when excluding FX.

Operating profit was minus 1% when excluding FX; however, during the quarter, the positive impact of our profitability improvement measures exceeded the negative impact of inflation for the first time, and progress is as planned toward achieving our annual guidance. Further, profit for the year grew year-on-year, resulting in both increased sales and profit.

In addition, it was decided at today's Board of Directors meeting that we will acquire up to 20 billion yen in treasury stock during this fiscal year.

Next slide, please.

P&L

Revenue: Strong global demand continued; Double-digit growth by TIS, Blood center business,

Vascular graft to drive the Group overall

Operating profit: Price policy revision and cost reduction effects accrued. Expanded OPEX for therapeutic devices

100M JPY

FY22 Q1

FY23 Q1

YoY%

YoY% (FXN)

Revenue

1,973

2,153

9%

5%

Gross profit

1,016

1,098

8%

5%

%

(51.5%)

(51.0%)

（ ）

651

15%

SG&A Expenses

566

10%

%

(28.7%)

(30.2%)

（ ）

154

10%

R&D Expenses

141

6%

%

(7.1%)

(7.2%)

（ ）

Other Income and Expenses

-6

3

-

-

Operating Profit

304

296

-3%

-1%

%

(15.4%)

(13.8%)

（ ）

345

-4%

Adjusted Operating Profit

359

-4%

%

(18.2%)

(16.0%)

（ ）

298

0%

Profit before Tax

297

%

(15.0%)

(13.8%)

（ ）

225

1%

Profit for the Year

224

%

(11.4%)

(10.5%)

（ ）

Average exchange rate (USD/EUR)

130JPY/138JPY

137JPY/150JPY

©TERUMO CORPORATION

4 / 13

Here are the P&L results.

Sales revenue was driven by the TIS and Vascular graft businesses of the Cardiac and Vascular Company, and by the Blood center business of the Blood and Cell Technologies Company, all of which grew in the double digits. Operating profit dropped slightly, but positive impacts from the price policy revision and cost reduction measures are happening as expected. We will reap even greater results from these profitability improvements in the 2nd half.

At the same time, we are strengthening SG&A investment in the expansion of therapeutic devices in growth markets like the United States.

In profit for the year, finance cost such as FX loss decreased, to help us secure increased profit.

Next slide, please.

4

Margin Ratio Recovery from FY22 Q4

C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies

Quarterly Adjusted Operating Profit Trend

24.9%

23.5%

( ) FY23 Annual Guidance

Adjusted Operating Profit%

20.6%

C&V

(23.9%）

17.5%

11.8%

14.3%

TBCT

（8.1%）

9.7%

13.8%

Terumo*（15.5%）

8.6%

6.4%

TMCS

（10.3%）

4.9%

-5.1%

©TERUMO CORPORATION

FY22 Q3

Q4

FY23 Q1

* Operating profit% for Terumo

5 / 13

The graph shows the operating profitability quarterly trend of the Group and adjusted operating profitability by company. The previous Q4 saw a high amount of one-time expenses, including inventory adjustment and increased fixed expenses, causing margin decreases for Medical Care Solutions and Blood and Cell Technologies;

however, in Q1 this year both companies have seen their margins recover.

The Medical Care Solutions margin reached a higher level than in Q4, but remains low against the annual guidance. This is due to the QonQ decrease in sales and the fact that impact of profitability improvement measures is anticipated to make its biggest contribution in the 2nd half.

Blood and Cell Technologies saw double-digit growth QonQ in sales, and improved its profitability.

Next slide, please.

5

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Disclaimer

Terumo Corporation published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 06:00:03 UTC.